Hart Nance and Jason Symington operate gift boutiques in shopping malls. The partners split profits and losses equally, and each takes an annual withdrawal of $80,000. To even out the workload, Nance travels around the country inspecting their properties. Symington manages the business and serves as the accountant. From time to time, they use small amounts of store merchandise for personal use. In preparing for his daughters wedding, Symington took inventory that cost $10,000. He recorded the transaction as follows:

Requirements
1. How should Symington have recorded this transaction?
2. Discuss the ethical aspects of Symingtons action.

Transcribed Image Text:

Debit Credit Date Accounts and Explanation Cest of Goods Sold 10,000 Merchandise Inventony 10,000